The process of Ukraine’s European integration is at its development stage. It is accompanied by the range of changes, which should be undertaken in economic, social and educational directions. Due to its dominating role, most attention is paid to economic component. Development of small entrepreneurship takes important place in the list of tasks to be solved in the course of European integration, as far as it promotes gradual creation of significant layer of small owners as the component of strong foundation of Ukrainian economic system. The article deals with the problems of adaptation of the International Financial Reporting Standards for small and medium enterprises of Ukraine in the conditions of European integration. The increase in the share of small and medium enterprises is a stable tendency of the modern economic system of Ukraine. The review of the legislation of Ukraine on the regulation of the activities of small business entities, as well as the organization of accounting and reporting is presented. The orientation towards the European integration of Ukrainian economy leads to changes in the legal and regulatory framework of the accounting sphere. This is manifested in a phased transition to international accounting and financial reporting standards. At the same time, the legislative regulation of the organization of accounting of small business entities in matters of transition to international standards needs to be further explored. The existing differentiation of small businesses involves their division into small enterprises and micro enterprises. This was manifested in the differences in the organization of accounting and forms of financial reporting. The differentiation of single tax payers, which also belong to small businesses, shows the differences in the organization of accounting, depending on belonging to the group of single tax payer.
In the process of developing international financial reporting standards for small and medium-sized enterprises, the aim was to obtain relevant, reliable and useful information on which qualitative and understandable accounting standards can be established for small and medium-sized enterprises. A prerequisite for the introduction of standards is that the costs of preparing financial statements for owners and other stakeholders will not exceed the benefits of providing such information. Therefore, the adoption of IFRS for SMEs should be preceded by appropriate preparatory work, in particular bringing different legislative acts to the same treatment of the conceptual category of small business.
The foreign experience of implementation of the provisions of the Standard is outlined. The controversial attitude of EU member states towards IFRS for SMEs is highlighted, where the national peculiarities of small businesses’ economic activity are the first. 

small business entities, accounting, reporting, association of Ukraine to the EU, international financial reporting standards for small and medium-sized enterprises